2003 (11) TMI 149 - AT - Central Excise

Summary

Issues involved:
1. Classification of seats used for automobiles as 'furniture'
2. Eligibility to pay duty ignoring notification benefits and claim Modvat credit
3. Entitlement for captive consumption exemption under Notification No. 217/86-C.E.

Analysis:
1. Classification of seats as 'furniture': The Tribunal referred to judgments by the Punjab and Haryana High Court and a previous Tribunal case, concluding that automobile seats cannot be classified as 'furniture.'

2. Payment of duty and claiming Modvat credit: The Tribunal followed Supreme Court judgments and a Tribunal case, allowing the option to pay duty and avail Modvat credit by ignoring exemption notifications. The issue was deemed settled based on previous decisions.

3. Captive consumption exemption under Notification No. 217/86-C.E.: The Tribunal noted the applicability of an Apex Court judgment in a similar case, supporting the appellants' claim for exemption under the notification. Both parties agreed that the issue was covered by previous Tribunal and Apex Court judgments.

In the final decision, the Tribunal upheld the appellants' plea regarding the payment of duty, claiming Modvat credit, and entitlement to the exemption under Notification No. 217/86-C.E. The Tribunal confirmed that automobile seats are not classified as 'furniture' based on previous rulings. Consequently, the impugned orders were set aside, and the appeals were allowed in favor of the appellants on all issues except the classification of seats as furniture. The appellants succeeded in their claims as per the terms discussed in the judgment.